Industry Research
Personal Finance
Group 5
Overview
1) Introduction of Personal Finance
2) 4 main ways of Personal Finance
3) Introduction a big player in industry
1) Introduction of
personal finance
Definition
the study of personal and family
resources considered important in
achieving the goal, how people spend,
save, protect & invest their resource.
Why Financial Plan?
easier to spend than to save
income - expenditure = savings
 income - saving = expenditure ***

to achieve a financial goal

what do you want to do with the money?
Uses of Financial
Planning
maximizing earnings and wealth
practicing efficient consumption
finding life satisfaction
reaching financial security
accumulating wealth for retirement & an
estate
Processes of Financial
Planning
Evaluate your financial health
Define your financial goals
Develop a plan of actions
Flexibility, Liquidity, Protection,
Minimization of taxes
 Implement your plan
 Review, re-evaluate and revise your plan

Financial Life Cycle
Early year - wealth accumulation
approaching retirement - golden years
the retirements years
Principles of Personal
Finance
Risk-return trade-off
time value of money
Risk diversification
All risk is not equal
The curse of competitive investment
market
Taxation Effect
Principles of Personal
Finance
Importance of Liquidity
Nothing happen it without plan
Knowledge is the best protection
Protect yourself against major
catastrophes
Time Dimension of Investing
The Agency Problem
Principles of Personal
Finance
Pay yourself first
Money isn’t everything
Just do it
Market Potentials
MPF
Longer life expectancy
Reform of public health policy
Decline of deposit taking business
China’s entry into WTO
2) 4 main ways to
personal finance
Model of Financial
Planning
Managing your money
Protect yourself with insurance
Managing Investment
Retirement and Estate Planning
A)Managing your money
Cash or liquid asset management
Using credit/Loan
Home and automobile decision
B)Protecting yourself
with insurance
Life and health insurance
Property and liability insurance
C)Managing your
Investment
With good investment, an investor can
accumulate wealth which may exceed
the need of financial goal
Types of investment:
 Stock
 Bonds and other derivative
 Foreign exchange
 Mutual Fund
D) Retirement and
Estate Planning
Retirement Plan
Property management (mortgage)
3) Introduction of
a big player
Citibank
Background
-Belongs to Citigroup, Global Consumer Group
-Services: Diverse consumer product offerings,
banking services, credit cards, loans and
insurance
- Industry-leading role: Advanced technology, a
strong worldwide presence and a powerful
global franchise in New York
-Target: Individual consumers and small
businesses up to $10 million in annual sales
Personal FinanceProducts
1) Managing your money
Checking
Savings
ATM/Debit Cards/Credit Cards
Pricing Packages
Lines & Loans
Loans
Checking Plus®(Variable Rate)
Use this cedit line for overdraft protection.
Or borrow funds from it directly whenever
you need cash.
Installment Loan
This fixed rate, unsecured loan from
Citibank for up to $25,000 is ideal for onetime purchases & debt consolidation.
. Citibank Home Equity Line of Credit
Use the equity in your home to secure a
Citibank home equity line. It's a variable
rate credit line of up to $500,000 you can
use for most anything.
Citibank Home Equity Loan
Use the equity you've built up in your
home to secure a Citibank fixed rate loan
of up to $500,000.
The Student Loan Corporation
Citibank can help you afford the education
of your choice. Apply for a student loan &
get a preliminary credit decision in minutes.
2) Protecting yourself with insurance
insurance
Insurance
CitiTermSM Life
Affordable term life coverage
Choose how much you need & how
long you need it
Can be converted to a permanent policy
in the future
Family ProtectionSM Life
Find out immediately if you qualify for coverage
online
Term life coverage from $25,000 to $150,000
No medical exam required
Long Term Care
Qualified healthcare expenses covered, up to
the amount of coverage you select
Helps you protect your assets & maintain your
independence
3) Managing your investment
Investing
Small Business
Investing
Online Investing Cititrade®
Trading & account information
Financial tools & calculators
Research powered by Citicorp
Investment Services affiliate Salomon
Smith Barney
Customer Service
Financial Center
Financial Executive face-to-face
Open an account & discuss investment
options
Place orders for stocks, bonds, &
mutual funds
And much more!
4) Retirement and estate planning
Individual Retirement Accounts
Mortgages
Individual retirement
account(IRA)
No Annual fee
No minimum purchase. However, some
products within your IRA may have
minimums. CDs, for example, have a $250
minimum.
To apply, fill one out online.
Types of IRAs
Traditional. Annual contribution may be
deductible. Earnings aren't taxed until you start
withdrawals.
Roth. May provide greater tax savings &
withdrawal flexibility than Traditional IRAs.
Eligibility is based on income.
Transfer or Direct Rollover. Transfer or rollover
assets (as permitted) from a 401(k), another
employer-sponsored retirement plan, or another
financial institution.
Citibank First Mortgage Loans
In the market for a new home?
Visit citimortgage.com to see which
Citibank mortgage suits you best. Then
apply online & get a preliminary credit
decision in minutes
The End